Torrent Power inks pact with SkyPower to acquire 50 MW solar power plant in Telangana

03 May 2022

Torrent Power said it has inked a pact with SkyPower group to acquire a 50-megawatt solar power plant in the southern state of Telangana. "Torrent Power Limited has entered into a share purchase agreement (SPA) with SkyPower Southeast Asia III Investments Limited and SkyPower Southeast Asia Holdings 2 Limited (the sellers) for the acquisition of 100 percent securities of Sunshakti Solar Power Projects Private Limited (SPV). The SPV operates a 50 MW Solar Power Project in the state of Telangana," the regulatory filing noted. The long-term power purchase agreement for the project is with Northern Power Distribution Company of Telangana Limited (NPDCTL) for a period of 25 years at a fixed tariff of approximately 5.35 per kWh, with remaining useful life of around 20 years, it added. "Enterprise value for this acquisition is approximately Rs 417 crore, subject to closing price adjustments if any," Torrent Power said, noting that the acquisition is further subject to customary conditions for transaction closure.Notably, Torrent Power is the integrated power utility of the diversified Torrent Group with group revenues of Rs 20,500 crore. The company currently has an aggregate installed generation capacity of around 4.1 gigawatt, which consists largely of clean generation sources such as gas (2.7 GW) and renewables (1.0. GW).